The Ministry of Finance Incorporated (MOFI) has unveiled the N100 billion Series 2 Offering under the MOFI Real Estate Investment Fund, a crucial initiative aimed at addressing Nigeria’s housing deficit.
This new offering builds on the success of the N150 billion Series 1 subscription, bringing the total capital raised to N250 billion. The MOFI Real Estate Investment Fund (MREIF) is designed to provide long-term, affordable financing for housing development and homeownership, targeting Nigeria’s estimated 20 million housing deficit.
According to MOFI, this initiative aligns with President Bola Tinubu’s Renewed Hope Agenda and seeks to mobilize private sector investments in the housing sector. The Ministry stated, “This second phase aims to attract institutional investors, with N100 billion expected from private sector participation.”
The fund emphasizes mortgage financing with repayment terms of up to 25 years and interest rates ranging from 11% to 12%, significantly lower than current commercial mortgage rates. This affordability is achieved through a blended finance model that combines subsidized public funding with private investments.
At the launch of Series 2, Finance Minister Wale Edun highlighted the importance of private sector engagement in expanding housing access. He described the Series 1 subscription as a testament to the government’s commitment to accessible homeownership and noted that Series 2 offers a valuable opportunity for private investors to contribute to job creation and infrastructure enhancement.
Dr. Armstrong Takang, CEO of MOFI, emphasized that Series 2 represents a significant step toward unlocking private capital for Nigeria’s housing market, establishing a sustainable framework for affordable homeownership across various income levels.
Dr. Shamsudeen Usman, Chairman of the MOFI Board, praised the initiative as a landmark achievement for Nigeria’s housing sector, reiterating its alignment with the government’s goals to provide sustainable homeownership opportunities for Nigerians.
